For instance,witha6pre-paymentpenalty,iftheborrowerweretorepaytheloanin3months,therewouldbe3additionalmonthsofinterestdue.Thisrequirementisputinplacein order for thelenderreceivesasmallyieldforthetime,hassleandapportionmentofitsfundsto aborrower.Iftheloanisrepaidbytheborrowerafterhalf a year,subsequentlynopre paymentfeewillbeissued.

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